Archive for April, 2011

Conspiracy, Collusion and Con-men – Why don’t they want you to buy Gold?

Thursday, April 28th, 2011

Here at we have always been suspicious of the Politocrats, Bankers and Global fortunes that endlessly manipulate markets and misinform the masses through the mainstream media.

Let’s face it they all have one thing in common and one goal – looking after themselves by milking the masses to increase their own personal wealth.

Governments around the world tell their voters that they are “doing it for the country”, “thinking of the future, the families, the under-privileged etc. etc.”

They lie. The only interest a politician has is keeping the power, its privilege and saying whatever it takes to stay there.

In reality nothing ever changes even when the ruling party does because they’re all in it together. They talk of democracy yet if you are not born into privilege, educated with privilege and financed by the wealthiest (who you must subsequently appease with policies that suit them) you have no chance of ever approaching the dizzy heights of Government where you can begin to change things for the common good.

Even Obama, the charismatic President of Hope, had to bow to the rich lobby with backroom deals to ensure he got into the race for the top. Where does the money come from to organise the campaign needed? Unless you’re a multi-billionaire you have to play along. So where is the democracy? It’s always the same interests that pay the candidates bills therefore buying the White House and controlling policy.

Look at the British model – Cameron, Clegg, Osbourne etc. – all posh boys with a lifetimes supply of money, public school and Oxbridge education. Same before with Blair, Brown, Darling and the dark lord himself Mandlesson (the biggest hypocrite on the planet). What do any of these have in common with their voters apart from the same type of passport. How can they have the audacity to preach what is right for the country and “sharing the pain” of austerity when it will never affect their own privileged lives.

Have you ever met a poor politician?

Have you ever met a politician apart from Nelson Mandela who has experience of real life, who has known hardship and suffering?

The political class all over the world are the same – self-centred, greedy, hypocritical, power-hungry and serve themselves before thinking about their peoples or country.

Yet when they spout their prepared rhetoric they expect us to believe what they tell us, they even convince themselves that they know what they’re doing. They’re ready to take the credit at the hint of a success yet they remain completely unaccountable for all the failures and the misery they create. No such thing as performance related objectives and pay for them. How many failed politician end up as a well paid consultant, after dinner speaker or in the House of Lords like Prescott (Socialist in only the drivel from his mouth and very much Capitalist in his lifestyle, cars and bank account)!

The Rothchilds, Rockerfellers, Murdochs and other similarly rich and shady “families” control everything from Governments, Fiscal policy and of course the markets.

One particular example is the manipulation of the Gold markets. This has long been explored and proven by our friends at GATA and it is worth reading some of their factual proof at

The Federal Reserve don’t want you to own Gold because they need you to borrow their printed bits of paper to make even more money for themselves. If they were a serious organisation would they have allowed a $14 Trillion + debt to run out of control? Would they be paying it off with bits of paper they keep printing (and therefore creating a devalued dollar by flooding the currency pool)?

In France, private investors hold more gold than the Bank of France and their affinity with the yellow precious metal goes back through history. The private investment in gold is continuing to increase as they arm themselves against this crisis. Eurozone sovereign debt issues are of great concern and people are taking no chances. The Greeks and Irish will default on their bailout packages and move to restructure. Portugal will follow.

The Euro will face a complete collapse or severe devaluation.

This is not a prediction but an eventuality. These three countries have no hope and no means to be able to cope with their debts and the austerity measures crippling their economies means growth is impossible. They face decades of misery, low standards of living and with inflation biting on daily necessities will soon be faced with civil unrest on an unprecedented scale.

However, a recent article by a prominent government adviser  in France shows the unscrupulous lengths they will go to. His name is Philippe Chalmin who is a Professor of Economics and sits on the Governments advisory committee. He gave a ridiculous outburst decrying and demeaning the value of Gold and called it “completely stupid”.

This from a country that survived WWII because of hidden gold.

This from a government puppet trying to put investors off the scent!

Similarly an article posted on the Marketwatch website by a Wall Street journalist, David Weidner, completely trivialises Gold. He should know better and his views are akin to a rabbit caught in the headlights!  You can see the detail via our friends at GATA here.

There is a stark contrast in the East where the Chinese are stocking up on gold. The Government, the Central Bank and private investors are actively being encouraged to buy. This shows intent to replace the weakening Dollar  by the Yuan as the world’s reserve currency and to back it in gold. The irony is that the biggest attack on the US Dollar is from The US Federal Reserve  by excessively printing bits of paper to buy off the US defecit.

The Establishment is petrified that people will ditch currency because Gold is a better protection against crisis and inflation – FACT.

The Establishment is petrified that people will stop investing in paper promises, stocks, shares, ETFs because they are all linked to debt and are vulnerable to collapse in a crisis – FACT.

The Establishment is petrified that they are losing control of the masses because we are not as stupid as they would wish and the real information flows freely and quickly via the net – FACT.

The Establishment is petrified that mere mortals like us are buying gold which leaves less for them and impinges on there “privileges” – FACT.

This is why don’t they want you to buy gold.

Greed, jealousy, protectionism, elitism.

Conspiracy and collusion by Con-men who seek to control everything.

So hit back and spit in their face

Buy what you want not what they tell you.

Beware of the mainstream media which is edited by those seeking to control.

Buying gold have never been so accessible and that scares them.

Buying gold protects your wealth against inflation and the effects of a crisis.

Central Banks, Governments and the Biggest fortunes in the world are all investing in huge quantities of Gold right now – do they know something you don’t?

Not now!

Spain’s Boom and Bust Property Market

Monday, April 18th, 2011

Here is a insight into the real problems facing Spain today provided by one of our esteemed colleagues at our Spanish blog

The surreal panorama left over from the Spanish housing boom

In some parts of different cities in Spain, we are able to find landscapes which have a desolate and eerie feel. They leave us with a feeling of nostalgia for that time of bonanza which was enjoyed for many years but which will not return, at least not in the way it was.

In this section we will focus on the economy which fed on itself until there was nothing left. It originates from the property bubble which according to many was born in 1997 but which ended up by exploding in 2007, this being the year in which this country fell on hard times and it seems that we have still not reached bottom yet.

The problem, apart from having channelled all activities towards this sector, resides in activities which were neither ethical nor transparent and in which so many banks and local authorities became involved who were blinded by their desire to get rich out of this business and entered into a maelstrom of distressing activities such as: reclassifying non-building land, sudden spectacular increases in interest rates, excess credit, etc which dramatically accelerated the collapse of this wealth cycle.

We find urban areas with large plots of buildings which are half-built, forgotten by the bank responsible for their financing owing to a lack of liquidity alongside those which have been finished and are waiting for a buyer who, for the moment, is not coming.
And how will buyers come?, if there is fear in the air about what happened, not to mention high unemployment figures throughout the country and low purchasing power today, we cannot allow ourselves this type of investment, which apart from giving you a roof also gives you an increasing debt year after year to which you will be wedded for the rest of your life up to the age of 65.

The Minister of Finance, Elena Salgado, is guaranteeing that the same thing will not happen to Spain as happened to Portugal because it has done its duties, namely: raising taxes, increasing the age of retirement, freezing pensions, etc.

If this is doing things right then we must trust God to help us when they do things badly. For the moment we are waiting for alternative solutions to mitigate the damage caused by the property phenomenon. The generating of employment which is what will help the country move forward does not seem to be around the corner and, as a result, the queues of unemployed people going to the offices of the INEM to submit the necessary papers to receive assistance which barely helps them live, continue to grow. This is to say nothing of those who do not receive anything.

Speaking of this type of subject causes a lot of indignation because we see the future of many people who have great talent and potential being undermined by the erroneous actions of those who lead the country. Directly or indirectly the economic situation affects us all either because we are living it ourselves, or because we have friends, family or acquaintances who are going through it.

The best thing to do at this time as one door closes is to open another one ourselves. If we only focus on one thing (as did Spain with its exuberant construction programme) we shall be left waiting for a miracle to happen and unless you are a great believer, there are very few who have the opportunity to experience one and talk about it.

As a result we need to diversify talent, diversify professions and diversify safe investments (such is offered to us by gold at this time) which give us a little peace and tranquillity knowing that at any time they may help us to get over the hurdles that lie in our path. There is no doubt that this is the best plan B we can have at this time.

Translated from an original article by Lizette Paternina

Spanish Gold coins: Alfonso XII 25 pesetas

Friday, April 15th, 2011

Here’s a look at some beautiful Spanish Gold coins with terrific potential for investment.

Alfonso XII 25 pesetas coins

Without doubt the Alfonso XII 25 pesetas coins are on the list of the most important coins in the history of Spain.
His life started with the coup d’etat on 3 December 1874 by General Pavía which brought about the end of the Republic and the establishment of the “Regency Ministry” by Antonio Cánovas, whose commitment was to re-establish the Bourbon monarchy.
All this effort culminated in the arrival in Spain of the son of Isabel II, who had ascended to the throne three years earlier while in exile.

25 Pesata coins

25 Pesata coins

With the Bourbons again at the helm, a new period started to strengthen the pesetas after 10 years of being minted only in copper and silver. This in turn saw the rebirth of the process of manufacturing in gold thereby demonstrating the maturity and growth of the new monetary system which over this period exceeded some 30 million coins.
Design of the new gold coins to be put into circulation occurred three months after the arrival of Alfonso XII by means of a Royal Decree.

Seal of Guarantee for this Currency

There were very few people involved in the design of this coin which propelled the kingdom’s economy for more than a decade. In concrete terms, there were seven experts over this period who were tasked with guaranteeing the quality of the product. Their duties required the printing of their initials on each coin, thereby certifying the process, the exact weight and its authenticity.
The nominated engraver was Gregoria Sellán Gonzalez who saw his work live on in the design of the coins of Alfonso XII and in the first two struck by his son Alfonso XIII.

The seals on these coins are the following:
Engraver: G.S. Gregoria Sellán Gonzalez

Assayers and Weigh Masters:
DE M: Eduardo Diaz Pimienta, Julio Escosura Tablares and Ángel Mendoza Ordoñez
EM M: Julio Escosura Tablares, Mauricio Morejón Bueno and Ángel Mendoza Ordoñez
MS M: Mauricio Morejón Bueno, Pablo Salas Gabarrell and Ángel Mendoza Ordoñez
MP M: Mauricio Morejón Bueno, Félix Miguel Peiró Rodgrigo and Ángel Mendoza Ordoñez

Description and wording on the Alfonso XII 25 pesetas coins

Coins from 1876

Coins from 1876

ALFONSO XII (1874-1885)
Year: 1876
Gold: Ley 900 milesimas
Diameter: 24,09 mm
Weight: 8.08 gr.
Striated edge
Obverse: ALFONSO XII – POR LA G. DE DIOS 1876/76 (between stars with six points). Head facing right. G.S. (Gregoria Sellán) shown at the bottom of the neck. Pointed fringe.
Reverse: REY CONSTL-DE ESPAÑA D.E. 25 PESETAS. Crowned, draped arms in the collar of the golden fleece and covered under the Royal cloak with the arms of Castilla, León, Aragón, Navarra and Granada; in the centre the Bourbon coat of arms. Pointed fringe. (Information extracted from Book: Gold Coins from the Collection of the Bank of Spain).

Coins from 1881

Coins from 1881

ALFONSO XII (1874-1885)
Year: 1881
Gold: Ley 900 milesimas
Diameter: 24.11 mm
Weight: 8.07 gr
Striated edge
Obverse: ALFONSO XII – POR LA G. DE DIOS 1881/81 (between stars with six points. Head facing right. G.S. (Gregoria Sellán) shown at the bottom of the neck. Pointed fringe.
Reverse: REY CONSTL-DE ESPAÑA D.E. 25 PESETAS. Crowned, drapped arms in the collar of the golden fleece and covered under the Royal cloak with the arms of Castilla, León, Aragón, Navarra and Granada; in the centre the Bourbon coat of arms. Pointed fringe. (Information extracted from Book: Gold Coins from the Collection of the Bank of Spain).

The manufacturing of these coins started in 1876, with the King’s image being reversed in order to distinguish them from the copper and silver coins. In 1962 a special commission was made by an American company based in Switzerland who made a prepayment both for the stipulated costs and the profits. Original stamps were used with the print date of 1961 and 1962 appearing between the stars.
On the edge of the coins there is an engraving of 27 lily flowers comprised of three groups of nine each.
For the manufacturing proofs and quality check on the engravings, copper coins were used which were subsequently destroyed to avoid them being put into circulation after being gold plated.

Run Rarity BC MBC EBC SC
1876* (18-76) DM M 1,281,474 C/C 16,000 21,000 24,000 28,000
1877* (18-77) DM M 10,047,885 C/C 13,000 18,000 21,000 25,000
1878* (18-78) DM M 5,000,000 C/C 15,000 19,000 22,000 26,000
1878* (18-78) EM M 3,192,442 C/C 16,000 20,000 23,000 27,000
1879* (18-79) EM M 3,447,644 C/C 16,000 20,000 23,000 27,000
1880* (18-80) MS M 6,862,947 C/C 14,000 18,000 21,000 25,000
1881* (18-81) MS M RR/RR 1m. 2m. 3m. 4.5m
(Table extracted from the Book: The Peseta,  Basic Catalogue by José Maria Aledón)

In 1881, it was decreed that the king’s image be updated and the result of this shows a great difference compared to the initial one from 1876. Such differences were not so noticeable in the mints from 1876, 1877, 1878, 1879 and 1880 where only slight changes can be seen to the head and features of Alfonso XII.

Run Rarity BC MBC EBC SC
1881* (18-81) MS M 4,266,234 C/C 16,000 19,000 24,000 28,000
1882* (18-82) MS M 413,741 E/E 35,000 18,000 65,000 140,000
1883* (18-83) MS M 668,855 E/E 30,000 19,000 70,000 145,000
1884* (18-84) MS M 1,032.744 E/E 30,000 20,000 45,000 100,000
1885* (18-85) MS M 502,613 E/R 95,000 20,000 140,000 375,000
1885* (18-85) MS M 491,143 R/RR 180,000. 2m. 375,000 1.1m
(Table extracted from the Book: The Peseta,  Basic Catalogue by José Maria Aledón)

After his death, all the coins (with the exception of the 2 pesetas) continued to be minted upon the order of his wife, Maria Cristina of Habsburg, until 1886 when his son Alfonse XIII was born and a year later Sellán made the first design with the image of the successor and thereby resumed the task of manufacturing the coins, a period which saw the issuing of the 20 and 100 pesetas coins.

Why do we consider that this is a good coin to buy?

The 25 pesetas coin is one of the most popular in the catalogue of gold coins which are currently in circulation in Spain, and which are also in demand from individuals from other countries who are interested in its historical and financial value. Given that it is one of the most known, its premium can increase considerably in times of crisis, thus acquiring values which are attractive and well-positioned in the world of offer and supply, which happened with the Napoleon in France, for example, and which can reach a premium of 100% during times of crisis.

We should recall that the premium is the difference between the price of the precious metal from which the coin is made and its market price, and that its value depends on many factors which we have explained in our article: “The Premium on Gold Coins”.
It is a type of coin destined to be saved in the future given its good condition and quality.

Translated from an original article by Lizette Paternina

Chinese to buy Spanish Sovereign Debt

Thursday, April 14th, 2011

Here’s a summary of events moving and shaking the markets supplied by our regular Gold Guru Bill.

In Wednesday nights website update initial resistance was listed at 1457-1465 and the high so far today is 1462.50  — support was listed at 1441-1447 and the low so far is 1450.50

London Gold Fix $1458.25 -$3.25

In yesterday’s update gold prices dropped right at the 9AM est timeframe and supported on the 1444 price support area.  Since that time, the gold market has rebounded into early Wednesday morning US trade but has yet to overcome the resistance area’s that it will need to in order to forge higher.

So far this morning, gold is tracking with equities, as the fear of slowing was at least part of the reason behind the aggressive selling in markets on Tuesday. The markets opened

The trade bounced higher on improved US retail sales release this morning, as investment demand for gold is likely to remain somewhat dependant on the prospect of inflation, which in turn can be dependant on the pace of the economy.  Business Inventories were up .5%
The key will be whether the stock market and gold will be able to hold those early gains as the day wears on.

The pressure for USA to work the budget deficit has President Obama addressing the nation this afternoon after the metals market close. Tax hikes and healthcare cuts are the speculation going into the speech –and as news trickles out  there is speculation of 100-150 billion dollar cuts in military spending proposed and entitlement spending.  Expectations are to suggest curbing domestic spending …. all the usual “talk” that one would expect.  This expectation might act to quell the upside on gold today going into the speech.

While the gold market saw evidence of rising gold production at Fresnillo in the first quarter, that news was offset by expectations of lower annual 2011 gold production from Kingsgate.

The gold market might also be garnering some lift from a survey released overnight that suggested many think central banks will be net buyers of gold in the near future. With the US Beige book, US retail sales up .04% , a Treasury auction and a Presidential speech/testimony today the gold market looks to have an active trade today.

The Dollar is near unchanged levels against most of the major currencies during overnight trading and is just sitting at the on the index.

The Spanish Prime Minister stated that China has reaffirmed their support for purchasing Spanish sovereign debt. Euro zone Industrial Production during February was up 0.4%, lower than projections. UK Unemployment during February was 7.8%, lower than forecasts. French CPI during March was up 2.2% year-on-year, higher than expectations. The second leg of the Treasury’s monthly refunding, the 10-Year Note auction, will have data announced at 1:00 PM EST

Going to the charts:

Yesterday low at 1444 was a retest of the breakout price we had been watching last week.  We can see on the chart that today’s price has moved back above that red trend line and price is hanging around that line as it tries to make it support.   So we could see a lot of price activity mostly in the 1453-1463 area today.

Support is the 1444-1450 area and resistance is the 1463-1468 zone.

In summary — markets may pullback from their early morning start and drift sideways as we approach the presidents speech on deficit reduction. As long as price is above the red trend line — its trying to forge support from yesterday’s pullback.   The lower PURPLE line is key to this price breakout and price needs to retain closes above the 1425-1430 area to keep the price  breakout move alive.

by Bill Downey

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Gold still to outperform commodities reckons Broker

Wednesday, April 13th, 2011

The interaction of the world’s markets plays an important role in the fluctuations and evolution of the Gold Price. Politics, economic policies and strategies, world events and currency changes can all have an effect on the demand for Gold as investors, private and institutional look to protect their wealth resources. At we champion the safe haven that gold and gold coin investment can offer in these troubled ecomonic circumstances where we have rising inflation, instability across the world and are on the verge of a new period of severe financial crisis.
Here’s a snapshot update from our regular expert analyst Bill Downey who explains where the gold price is, where it might be going and some of the factors that are affecting it.

In Tuesday nights website update — initial resistance in gold was listed at 1464-1468 and the high so far is 1467. Second tier resistance for today was listed at 1474-1478 — and that would be the area to watch if we can continue to move higher today.

Initial support was listed at 1444-1455 and the low so far today is 1453.60

London Gold Fix $1461.25 -$8.25

While the June gold contract saw an initial downtrend overnight, gold prices have recovered above the prior session’s closing value in the early Tuesday US trade action. Gold appears to be partially undermined by declining oil prices and a dampening of overall inflationary fears.

News that a major commodity trading brokerage firm was recommending profit taking in commodities, may also be undermining the gold market slightly. However, another key brokerage firm suggested that gold would outperform most commodities directly ahead and that might help gold prices stand up to the partial liquidation wave in some commodity prices.
Indian gold prices were slightly weaker overnight and news of another quake in Japan applied some minor pressure to gold and other commodity prices overnight. While the trade balance report from the US can drive gold prices, expectations for a slight narrowing of the US trade deficit might be seen as a negative to gold prices, especially if that report lifts the greenback and adds pressure to the bond market. If that would be the case — we think it would be temporary. The US dollar is under pressure again today and the Euro has now traded at the 145 level — a very IMPORTANT price point.

While the gold market generally saw dovish comments from the Fed yesterday, dialogue from the Fed’s Hoenig today might be add to the downside tilt as they are trying to “TALK” their way into making the markets think that there is not going to be more stimulus. So that is the one thing that could return gold to testing the lower areas from last night.

Equity markets in Asia and Europe were weaker during overnight trading and early indications are for the US stock market to open today’s session with moderate losses as Alcoa reported lower than expected earnings and Japan raised the danger level of its on-going crisis. The Japanese Economics Minister said that last month’s earthquake and tsunami would likely have a larger negative impact on the Japanese economy than earlier projections. A proposal by the African Union to end the Libyan conflict was rejected by rebel forces. The German CPI during March was up 2.1% year-on-year, in line with forecasts. A survey of German economic sentiment during April was 7.1, lower than estimates. The UK CPI during March was 4.0% year-on-year, lower than projections. The UK Trade during February was 6.78 billion Pounds, a smaller deficit than forecasts. Major US economic numbers to be released this morning include the February International Trade Balance, as well as Export and Import Prices at 7:30 AM, and surveys of store sales will also be released during the session. In addition, Fed Regional President Dudley will give a speech during the session. The first leg of the Treasury’s monthly refunding, the 3-Year Note auction, will have results announced at 12:00 PM CENTRAL time.

Going to the gold charts:

Last nights low was right at the dotted trend line on 30 min chart we published on the website and as long as the 1444-1455 area holds the trend remains up. The market is NOT AS BULLISH as it looked when we entered the week — and even though gold has come back 13 dollars from the low — we’re not out of the woods just yet on this pullback. The 1468-1470 area is probably the most important price point to watch today. We want to see gold above 1468 on a closing basis to add more potential that the pullback is complete. Until then — we can’t rule out more downside pressure today.

It seems like the 9am-10:30AM EST period today might be where the rubber meets the road — and that time frame is when gold would be the most likely to try and pullback.

In summary — the trend is still up —but not as solid as last week– the 1468-1470 area is resistance. Support is the 1444-1455 area. We still favor the bulls —- but we might remain in the 1450-1470 area today in price.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold
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The most detailed info that publishes is available on the web site via paid subscription.

People often ask if it is the right time to buy gold?

Quite simply it is always the right time to buy gold if you are looking to protect and preserve your wealth.

Sure the price can vary but the real value in owning physical gold is that it is your outright property which cannot be wiped out during a crisis or financial collapse. So think of a stocks and shares investment (or any other “paper” investment) the day after a crash – now think of physical, tangible gold assets that you own the day after a crash. The difference is obvious – one is worthless and may even lead to debt, the other has inherent value that will still be sought and can therefore be traded or sold.

Buying gold nowadays is simple and accessible to everyone.

You do not need to physically possess gold at home to fully participate, indeed quite the contrary – keep it safe, keep it in a vault and keep it accessible to sell whenever you choose.

For further information click here.

Gold set to Breakout, Dollar takes a dive

Tuesday, April 12th, 2011

Here at we regulalrly feature expert Analysis from Bill Downey of to keep readers up to date with possible moves in the market.

Bill’s comments are drawn from a wide variety of sources and provide an up to date overview of the evolution of the gold price.

Here what Bill is saying:

In Sunday nights website update — resistance for today was listed at 1483-1490 and the high so far is 1476.50 — support was listed at 1458-1463 and the low so far is 1464.50

London Gold Fix $1469.50 -$1.00

Late Sunday night in the US and early in the Asian Monday trade saw commodities on the rise. However, news of a possible Peace deal in Libya and another 7.1 earthquake in Japan seemed to prompt a pause in oil price upside and in other commodity markets.

News of ongoing inflows into gold derivatives at the end of last week is lending to gold support so its generally a sideways choppy action we are undergoing this morning. The reversal in oil prices seemed to shift the attitude in a number of commodity markets this morning to a more sideways movement. With the big rise last Friday in commodities, it looks to be profit taking at the moment and not a start of a downtrend.

The Bretton Woods meeting hosted by George Soro’s over the weekend has calls for the US dollar replacement — but that was to be expected. The G20 meets in Washington DC on the 15th of the month and it would be interesting to hear the conversations that will take place there. With that meeting coming up at the end of the week — it is possible that gold may stay have some restraint later in the week, but the overall short term trend is still up.

The US Dollar is slightly bouncing this morning back to the 75 level but remains at key levels on the long term charts.

The Commitments of Traders Futures and Options report as of April 5th for Gold showed Non-Commercial traders were net long 230,758 contracts, an increase of 16,775 contracts. The Commercial traders were net short 287,091 contracts, an increase of 23,006 contracts. The Non-reportable traders were net long 56,332 contracts, an increase of 6,229 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 287,090 contracts. This represents an increase of 23,004 contracts in the net long position held by these traders.

A 7.1 magnitude earthquake hit near the Tokyo area today, causing water pumping at the Fukushima plant to be shut down for 50 minutes. Major banks in the UK were told to raise their capital levels and separate their retail operations from investment banking activities. Chinese Exports during March were up 35.8% year-on-year, while Chinese Imports during March were up 27.3% year-on-year, both of which were above market expectations.

Going to the gold chart — the breakout from a five month trading range last week is in play and while there is consolidation today from last Friday’s upmove — it does not look like a downtrend is beginning at the moment.

A new red line on the chart shows the short term FIRST support for this weeks action near the 1455 area on a closing basis. Additional support would be the 1444-1450 area on intra day pullbacks. THus the two key areas are the red trend line —and the lower purple line on the up channel. As long as price is above those price areas — the trend remains up. Resistance is the upper purple line near the 1490 – 1492 area.

In summary, todays consolidation in the 1460 area is normal after a nice upmove from last Friday and the bulls still have the short term advantage. First support will be the Red trend line — and resistance for the remainder of today looks to be in the 1473-1478 area. A pullback in the 1445-1455 area this week might provide an area for finding initial support. The bulls still have the advantage at the moment and the action does not at this point indicate that the trend has turned down — but rather is consolidating in the 1460 zone.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold
Login: demo-feb Password: spot2see

The most detailed info that publishes is available on the web site via paid subscription.

People often ask if it is the right time to buy gold?

Quite simply it is always the right time to buy gold if you are looking to protect and preserve your wealth.

Sure the price can vary but the real value in owning physical gold is that it is your outright property which cannot be wiped out during a crisis or financial collapse. So think of a stocks and shares investment (or any other “paper” investment) the day after a crash – now think of physical, tangible gold assets that you own the day after a crash. The difference is obvious – one is worthless and may even lead to debt, the other has inherent value that will still be sought and can therefore be traded or sold.

Buying gold nowadays is simple and accessible to everyone.

You do not need to physically possess gold at home to fully participate, indeed quite the contrary – keep it safe, keep it in a vault and keep it accessible to sell whenever you choose.

For further information click here.

Protecting your assets against inflation – Gold as an inflation hedge

Saturday, April 9th, 2011

Here at we have regularly championed this view which is explored below in an article written by our guest writer Angela Brown.

With the present condition of the United States, most people are looking for ways to boost their income resources and protect their savings. As the debt level is rising, more and more people are finding themselves drowned in an ocean of credit card debt. While some of them are choosing debt management as an option, some are trying their luck in the investment industry to augment their income and help themselves come out of debt. Inflation is a general increase in the price of commodities when your money is worth less. Well, you need not fret as there are ways of safeguarding your savings by investing in gold. Gold has been a haven for the most fearful investors to protect their savings from financial crisis.

How can gold act as a hedge against inflation?

In case of inflation, the prices of commodities rise and this reduces the value of money. $1 will be able to buy fewer amounts of things during inflation. The pressure that is created on the Federal Reserve in America and the European Central Bank in Europe ensures that money has lost its value. The side effect of such inflation is that more money is injected into the economy but with lesser worth.

Gold, the most precious metal, in recent times is seen as the safest haven for investors who are spending sleepless nights due to the fear of a crisis and the devaluation of the money. Most often you will see that whenever there is a decrease in the value of a dollar, the price of gold will rise. A falling dollar is most often directly proportional to the surging gold price. As an investor, therefore you can certainly invest in gold to stay protected during any financial circumstance. Inflation can not take a toll on your financial life if you have already invested your money in gold.

As gold is bought and sold in US dollars, any decline in the value of the currency will lead to a price rise. The US Dollar is the world’s reserve currency and the primary medium of all transactions. But without the backing of gold, the US dollar is worth nothing more than a fancy piece of paper.

Gold has often been referred to as the crisis commodity as it has the capacity to outperform all the other investment forms. The very same factors that can have a positive effect on the other investment vehicles can have a positive effect on gold. Therefore, if you’re a debtor who wants to invest money to make money, you can try gold investment and stay protected against all financial odds. You may also try getting help from a debt management program to combine your payments and repay your creditors.

If this article has encouraged you to think about gold please consider the following;

Protect your wealth in Gold and protect your future – makes Physical Gold Investment accessible to everyone, 24/7, on-line in real time and offers innovative ways to start investing such as the World exclusive LinGold Savings Plan.

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Gold on the Up, Dollar going down – says Bill

Friday, April 8th, 2011

The Trend for Gold continues upward and the Dollar is falling again – so says Bill Downey of, our regular expert Analyst. Her’s the latest from Bill for April 8th:
In last nights website update initial resistance was listed at 1462-1468 and the high so far is 1473. Support was listed at 1443-1449 and the low so far is 1466.

London Gold Fix $1470.50 +$14.00

The June gold contract in the early Friday action has moved to fresh new all time highs. In addition to ongoing concern of a US government shutdown, the gold market also saw a sharp range down extension in the Dollar overnight and therefore the bulls have a lot of fundamental arguments for the upside. In addition to the potential failure to reach a budget deal, the gold market might also be rising off the fact that the US budget cuts are minimal in the grand scheme of the multi-trillion dollar US budget! In other words, leaving US government spending high and the deficit growing is seen as an inflationary development, and as a development that weakens the Dollar and lastly increases the move to quality sentiment in the gold market off the rising prospect of a US credit rating downgrade. Those same ratings agencies that were grilled by Congress over their slack pre-sub prime ratings efforts, should probably slap US debt with a downgrade once the puny US spending cuts are put in perspective.

While the gold market could have been held back by news of a rise in Gold Fields quarterly gold production for their 1st quarter, that potential production gain actually follows a decline in gold production from that company in the previous quarter. Nonetheless, the gold market hasn’t paid that much attention to the supply side of the equation recently.

With some budget negotiators calling for a mid morning deadline on a deal this morning, there could be two volatility events today, one this morning and another into the afternoon closes in the event that no deal is reached.

The Dollar has GAPPED lower against most of the major currencies during overnight trading as the credibility is fast eroding and the break at the price chart is causing selling and shorting. Problems in Libya and Nigeria as well as escalations in Syria and the middle east continue to add pressure on oil prices as well.

In summary — the metals continue higher as the gold breakout of a five month pattern is suggesting the move will continue higher. We may see some traders taking some profits off the table as we go into the weekend —and that could keep prices range bound going into 11:30AM est as London comes up on the close — but there seems to be buyers in the mid 1460’s.

Support for the remainder of the day is the 1457-1464 and resistance is the 1475-1480 area.

Going to the gold chart, the consolidation over the past few days has held the initial breakout and the upside continues to be favored. The next upside target is the upper purple line near the 1500 area. Pullbacks today should be limited to the mid 1460’s. As long as price is within the purple channel lines — the trend remains up.

If the US government come to terms later today — it could produce some volitility — but the bottom line is that none of the problems are going away — deal or no deal.

A CLOSE ABOVE 1466 is an important number today to set the pace for next week. The trend remains up.

by Bill Downey

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The dawn over the Empire of the Setting Sun

Thursday, April 7th, 2011

An unfettered pack of lies

When we tell young people that in 1986 we were naive enough to believe the authorities who told us that the radioactive cloud had stopped at the French border, you attract, and rightly so, a few sniggers and mocking smiles.

When I tell these young students that it will perhaps be their turn in 20 years time to be the object of derision by their own children, surprise quickly gives way to incredulity and a certain amount of concern.

Let’s look again at the facts. Facts have this annoying tendency to be difficult to change although…

On 14 March 2011, a terrible earthquake ravaged Japan, following by a devastating Tsunami. Among the areas affected was the Fukushima Daiichi Nuclear Power Plant composed of 6 reactors which have since been experiencing difficulty. Chernobyl only had a problem with 1 reactor. We can therefore summarise the situation as Russia 1, Japan 6.

Since 14 March, the information provided by the Japanese authorities has been very limited, perfectly controlled and little short of the communication methods we used to see in the former USSR.

Let’s recall the accident at the Swedish nuclear power plant in 2006. The operators almost lost the nuclear reactor in less than 30 minutes owing to a fault in the cooling circuit allied to an electricity power failure (which really takes the biscuit for a nuclear power plant which is supposed to produce electricity), which was in turn linked to maintenance work. The safety systems (to keep things simple the back-up generators) were simply not turned on. A catastrophe was assured in 30 minutes this being the time needed for the start of fusion within the core of the reactor according to the articles and the experts who were at the time in agreement about the seriousness of this incident. For 15 days, the cores of the nuclear reactors in Japan have no longer been truly cooled…..but of course this does not cause any problem.

There is smoke escaping on virtually a daily basis from one or other of the damaged reactors, but of course this does not pose any problem.

The drinking water in Tokyo is from time to time unfit for consumption but the next day when the shops have run out of bottled mineral water and the entire population can no longer be supplied…the water becomes drinkable again. The sad alternative is to either let the population drink irradiated water or to die of thirst.

In brief, this accident which is jeopardising the “survival” of nuclear reactors potentially risks being more serious than the accident at Chernobyl. As stated by the Japanese prime minister: “the situation at Fukushima is unpredictable”.

But let’s get back to our little retrospective. Check it out for yourselves by calling on your memory (you will see that this works well) or by searching the internet for all the podcasts for this period which are to a large extent still online).

On Tuesday 15 March the European Commissioner for energy stated that it is “the apocalypse”.

Financial markets across the planet are in free fall. The mega crash is fast approaching and it risks making the subprime crisis in 2008 seem like a mere trifle.

The next day, on Thursday 17, there was a great change in how information was broadcast and managed. A helicopter took off with some buckets of water to pour onto the smoking reactors “trusting to luck” (look back over the videos to understand the accuracy used).
Thanks to these wonderful images, the Press unanimously spoke with effect from Thursday of “Glimmers of hope at Fukushima “. The markets are rebounding, the main thing is safe (our money).
The Japanese can calmly go on exposing people to radiation.
Using the following link you can see around ten good definition aerial photographs of the various buildings at the Fukushima power plant. They are not very reassuring.

On Friday 18, some tankers from the Tokyo fire service also arrived to hose down the smouldering ruins which, I remind you, officially did not explode. In fact there were huge explosions witnessed by the entire planet, but they were not serious. Obvious they were just controlled degassing activities (hydrogen) which exploded but nothing to be alarmed about, the reactors are fine, honestly!. Thanks to this, the Press were unanimously able to lead with headlines such as “Encouraging Progress at Fukushima”!
I advise you to read the report entitled, “the Battle for Chernobyl” which provides an exhaustive clarification on the risks and challenges faced by the ex-Soviet empire in order to limit the extent of this nuclear catastrophe. It is important to note that hundreds of helicopters, thousands of armoured vehicles and more than 500,000 men were used to construct the sarcophagus around the damaged reactor. At Fukushima the problem is multiplied by six. How are they going to deal with it?

It is therefore certain at the time that I am writing these lines. We are faced with an unfettered pack of lies which we are forced to watch powerless as it unfolds. Except for the fact that the internet exists today and we have more chance to keep ourselves informed. We are experiencing a real Chernobyl 2 !!

Multiple under-estimated economic consequences

Is there any hope left? Doubtlessly there is, and being an optimist by nature, I want to believe that solutions can be found. Nevertheless, the official radioactive pollution is now spread over more than 100 km. Tokyo, the capital, is situated less than 250 m from the Fukushima nuclear plant. The entire North of Japan has been substantially affected, not to mention all the areas which have been wiped off the map by the double whammy of the earthquake and the tsunami.

The French government has just set up a special unit in order to plan as best as possible for the shortage of components which will certainly affect France starting from April leading to certain production stoppages and probably measures of technical unemployment in certain industries.

Apart from the losses in human lives, the cost of this double catastrophe (natural and nuclear) is far from being known and is certainly currently be played down. The last assessment talks about more than 28,000 who are dead or missing. There is more than 350,000 left without shelter in the North-east of Japan, 70,000 people have been evacuated within a 20 km radius around the plant. Between 20 and 30 km, 136,000 other people are waiting to be evaluated after being confined to their homes for more than 15 days.

Japan as the second largest economy in the World (or the third according to how China is classified) is a vital link for globalisation. Japan is heavily affected and faces a number of major challenges:

– A nuclear catastrophe which is absolutely not being overcome and which may eventually lead to a drama in the event of any worsening of the situation in one of the affected reactors.

– debt of more than 200% of GDP (by means of comparison, France has a debt ratio of around 80% to GDP whereas that of “bankrupt” Greece is 120%). At the time of the Kobe earthquake, the debt ratio of the Japanese state was only 85% of GDP (this was in 1995). The reconstruction effort risks leading to an unsustainable increase in this country’s debt which will speed it towards unprecedented economic difficulties. On 15 May 2010, the alarm bell was also sounded by the IMF and the rating agencies on the non-sustainability of Japanese short-term debt.

– Industry virtually at a standstill. The Japanese are the inventors of the Just in time methods which, even if they have convinced the World, demonstrate their limitations in the event of catastrophes. The consequence of the total absence of any stock is the halting of numerous production activities leading to massive shortages on supermarket shelves which still remain empty at the present time. No more water, less and less food, major power cuts which no longer make it possible to manage stocks of fresh or deep-frozen products.
With regard to the major international companies the example of aircraft manufacturer Boeing is striking with Japanese companies building 35% of some models of aircraft.

– A currency value which is spiralling upwards. The massive purchases of the Japanese yen and companies who are liquidating their overseas assets in order to repatriate them to cope with the National reconstruction effort have propelled the Yen towards an historical high. Added to the “natural” appreciation of the currency is major market speculation on fund repatriation forecasts.
The consequence is that a currency which is too strong triggers a significant decrease in exports, given that a brutal increase in the value of the currency cannot be offset by an increase in productivity especially in a country ravaged by a natural catastrophe of this size. Nevertheless, in the medium term and bearing in mind a expansionist monetary policy, the Yen should find a more acceptance exchange rate.

– Japan is a country with a very heavy population density. Many people but not many habitable spaces. On average, the price of real estate is the most expensive in the World. Banks therefore there have particularly large outstanding real estate loans. In the region of Fukushima, more than 70,000 people have already been evacuated. In Ukraine, next to Chernobyl, the town of Pripiat is still a ghost town 25 years after the explosion of the reactor. There the banks did not have any loans. There were only 45,000 inhabitants. What will become of bank debts in this case? How will the losses (because they are large) be managed? Might we again face a major international banking crisis as the extent of the Fukushima nuclear catastrophe appears? Imagine the extent of the impact on real estate debts in the event of the evaluation of Tokyo which houses 35 million people…..a situation which it is quite simply unimaginable from a financial perspective. The economic system could not cope, or would cope with great difficulty. Perhaps this is why the situation in Fukushima is no longer alarming after 17 March 2011.

– Japan is an aging country, whose current population of 127 million has been decreasing since 2005 and is set to be halved between now and the end of the century to reach 60 million inhabitants.
But how can these debts be repaid without economic and demographic growth, Mechanically and mathematically, the less the number of inhabitants the bigger the total debt per head of population.

– The Fukushima nuclear accident has revived the fear about nuclear power. In the United States, no nuclear reactor has been built since the accident at Three Mile Island in 1979. After Chernobyl, there has been no further development of any nuclear power plant in USSR, the same will be true of Japan after Fukushima. In German 7 reactors have already been halted because they were deemed to be too dangerous.
The only rapid and credible replacements for energy in the short-term are Gas and obviously Petrol whose prices might be propelled to highs in the coming weeks. Economist are agreed, however, that a barrel of petrol whose price exceeds 120 dollars leads the World economy into a recession. As at 4 April the price of a barrel of petrol was still rising and seemed to have sustainably settled at over 110 dollars.

Towards an acceleration of changes which are already being felt

It is therefore to be feared that all of the cumulated factors discussed present a global systemic risk to the global economy which might be hard to redress in the aftermath of Fukushima and the slow agony of this nuclear cataclysm being witnessed in Japan. Perhaps we are witnessing the premature disappearance of a Nation, of the slow dawn on a Empire.

You wanted to save money in the short-term despite the life of mankind, you will lose mankind and you will lose money because there is no wealth without mankind.

Indeed, even oysters risk deserting our New Year’s dinner tables. Affected and decimated by a mysterious illness, our producers have ordered spats from Japan in Sendau. Japanese producers are also lacking our oysters.

It is still not time to make the tally. Having said this, the Fukushima accident may well be the signing of the death warrant for the nuclear industry which is a dangerous industry and about which we neither know how to manage the dismantling work nor how to manage waste and whose costs are not taken into account in the operating prices for this energy which is more expensive than people think when all this indirect costs are included. This is not to mention the price to be paid in terms of a catastrophe which are quite simply unbearable both in financial terms as well as in human suffering. The “‘homo economicus ” will have to learn another form of sobriety.
From Peak Oil to the depleting of raw materials, from the challenges faced by agriculture in feeding our planet to the sharing of water (threatened resource) the World is changing.

The Japanese cataclysm will undoubtedly hasten these changes.

Translated from an article by Charles SANNAT

Half-Napoleon 10 Francs Gold Coins

Tuesday, April 5th, 2011

We have long since championed the benefits of investment in Gold coins because of their dual leverage – gold price and premium. We have also explained the concept of premium differential (elevated premium during a crisis – normal premium) and the potential of certain coins to have significant investment qualities because of their elevated differential.

Well the Half- Napoleon 10 Francs is one such coin which can have a premium differential of 80%. These coins can literally be worth almost twice their price in gold content because of their high premium. This makes them attractive gold investments and they are always in demand.

Innovative Gold Investment

We have previously talked about a World exclusive innovation by our friends at which is called the LinGold Savings Plan. This has made physical gold investment accessible to many more people and encourages saving – in gold bullion.

We already loved this concept but now they have taken it further.

They have now added a unique product to this Plan using the Half-Napoleon 10 Francs. They have taken a batch of 100 coins which equates to a pure gold content of 290g and then made sections available in 1g portions. These can be bought for €43 and kept as part of the LinGold Saving Plan (LSP) which offers vault storage free of charge.

This means that Members can now benefit from the premium differential of Half Napoleons as part of their LSP and without needing the means to buy coins outright.

All individual grams are uniquely coded and ownership certificates are provided.

Anti-inflation and anti-devaluation

Again the benefits of being able to save in physical gold bullion or gold coins is that you are protecting your wealth in the safest refuge against a crisis and notably the precious metal that allows you to protect the value of your wealth against inflation and the devaluation of currency.

History has confirmed this time and again – when crisis hits it is those people protected by durable, valuable assets that survive the best. Paper currency eventually becomes a worthless piece of paper, good for burning, but Gold has been and always will be the real measure of value.

Why? Because you cannot print more of it to suit your politics – and its properties and finite quantity will always bestow real worth on its owners.

To start saving in gold now and for further information visit

Gold Trends Intra Day Gold Update – April 5th

Tuesday, April 5th, 2011

In last nights website update resistance was listed at 1437.50-1446 and the high so far is 1439. Support was listed at 1419-1425 and the low so far is 1430.

London Gold Fix $1434.50 +$2.00

There is a lot of cross current news this morning moving gold.

Gold prices were showing some positive action initially overnight despite minor strength in the Dollar versus the Euro and a few others. The gold market got marginal support from suggestions from the US Fed Chairman Monday night who labeled inflationary pressures as transitory, as that seemed to suggest that the Fed chief was a little less confident that inflation would indeed remain in check. In other words, the trade seemed to take the Fed comments overnight as a sign that inflation pressures were being acknowledged but were not fully entrenched yet. However, the Fed Chairman also suggested that recent price gains were probably temporary and that left the gold market somewhat confused. Indeed — he looked nervous during the discussion.

The gold market garnered some support from news of a credit downgrade of Portugal overnight, especially since the ratings suggested that the status of that debt remained under review.

Gold traded in the 1434 to 1439 area up until the London open. However, outside market action have limited gold prices early in the trade today, as some commodity markets like corn corn and soybeans started out on a softer footing–at least initially.

The gold market was also undermined by news of further Chinese tightening action overnight. The Chinese moved 25 basis points on lending and deposit rates and that event probably increased overhead resistance in the US gold market this morning near the 1440 area. Still — the last few rate increases from China had almost no effect — pretty much about what we’ve seen so far today. Over the last four hours — gold has tried to break below the 1430 area. Each hour has

The gold market will also be watching the GOP budget proposal release later this morning, as aggressive deficit reduction efforts could also be seen as a limiting development for gold prices. Paul Ryan has rolled out the plan and the big number is 6.2 TRILLION DEFICT REDUCTION OVER 10 YEARS —– The proposal was just released — so it will take a few days to see how the market absorbs this and how the debate unfolds.

Meanwhile the US BUDGET DEFICIT CEILING runs out FRIDAY — and the politicians are going back and forth in threats to not extend the ceiling on the Republican side.

While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally lower this morning. The Dollar was slightly higher against most of the major currencies during overnight trading, although posting a substantial loss versus the Pound.

A credit ratings downgrade of the sovereign debt of Portugal by one level this morning. Euro zone Retail Sales during February were down 0.1%, lower than expected. Major US economic numbers released this morning include a survey of US non-Manufacturing industries grew less than expected, but it wasn’t a barn burner.

GOING TO THE GOLD CHART — today we show the daily chart and the short term cycles we follow on the website. Orange circles are when the stronger trends usually peak — and the blue circles are when the weaker trend usually ends. While not all points work — take February for example — there is enough to at least keep an eye on developments. The trend is still up —- watch 1439-1444 as a key area.

On the downside — there has been a test every hour since 7AM EST of the 1430 area but so far it is holding— and that puts SUPPORT for the remainder of the day at 1425-1430. As long as price is above that area — its still up.

In summary —- the trend remains up —-We think that 1439-1444 is the PIVOT PRICE AREA TO WATCH — and closes above 1444 would increase the potential for the upside. PRICE ALWAYS RULES — but these short term trends need to be watched going into Wednesday. AS LONG AS PRICE HOLDS 1425-1430 support today — continue to favor higher.

by Bill Downey

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Gold Trends Intra Day Gold Update – April 4th

Monday, April 4th, 2011

In last nights update resistance in gold was listed at 1437.50-1446 and the high so far is 1439. Support for today was listed at 1419-1425 and the low so far is 1427.60

London Gold Fix $1432.50 +$1.50 LME

While the Dollar is slightly higher early, the Greenback remains within striking distance of last week’s lows. With the gold market overnight seeing a rather hot ECB inflation reading and seeing crude oil prices claw out another fresh new high for the move and a host of commodity prices trading higher, the gold bulls feel somewhat confident to start the new trading week.

Some players in the market expect some dovish comments from the Fed’s Bernanke today and after dovish dialogue from the Fed’s Dudley at the end of last week, the threat of rising US rates may become an issue but so far — it seems to be just talk. There is a G20 meeting mid-month so that’s something we’ll have to keep in mind.

Some players think that news of a release of RAD into the ocean in Japan is a limiting issue for gold, but one could also suggest that development could ultimately be inflationary if Japan is forced to seek alternative protein in the grain and livestock markets.

The Commitments of Traders Futures and Options report as of March 29th for Gold showed Non-Commercial traders were net long 213,983 contracts, an increase of 3,448 contracts. The Commercial traders were net short 264,085 contracts, an increase of 1,242 contracts. The Non-reportable traders were net long 50,103 contracts, a decrease of 2,205 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 264,086 contracts. This represents an increase of 1,243 contracts in the net long position held by these traders.

While equity markets in Asia and Europe were mixed during overnight trading, early indications are for the US stock market to open today’s session with moderate gains.

The Bank of Japan’s Tankan survey of Japanese manufacturers projects that business conditions in Japan will worsen during the next three months as a consequence of the Sendai earthquake.

A Libyan envoy has traveled to Greece to begin discussing an end to hostilities in that nation. The US State Department is flying their employees out of Syria due to continued unrest.

Euro zone PPI during February was up 6.6% year-on-year, in line with market forecasts.

Going to the charts ……………..

On Friday’s update we discussed the tendency for gold to move higher after the USA unemployment data and after hitting a low of 1412, gold rallied back to the 1430 area for the close.

Coming into today and the 1439 high — it really comes down to whether gold is going to burst through the 1444 area this week. A WEEKLY Friday close above 1436 — and 1444 is needed to add to the upside potential. Although the trend is still up — the stronger trends we watch are due to peak here between today and Wednesday and a weaker trend is scheduled to begin and last into mid-month. Price always rules — and turn points are secondary — so we would want to see price begin to react and show weakness before we consider that the weaker trend has kicked in. But it’s something we need to be aware of should gold begin to trade lower. First Targets for this coming week to watch for is the 1440 to 1453 area. I’m looking to sell 1/2 my long short term gold positions from 1406 and 1418 should we trade up to the 1450 area.

The chart shows two red arrows —- the lower arrow shows the Feb lows how the market pulled back to 1325 on four occaisions in one week but was not able to break lower. The same condition happened last week — where there were four pullbacks to the 1410-1412 area — all of which produced a nice bounce back up. The lows were right on the lower purple channel line on the chart. This kind of action usually favors higher prices.

Thus, from a swing trade standpoint — as long as we remain above the 1408-1410 price area on a closing basis — the trend is still up.

Resistance is the 1439-1447 area today and first support is the 1427-1432 area.

In summary — the gold market trend is still up. A daily close above 1436 and/or 1444 would be helpful and favor higher prices into Tuesday/Wednesday. Going forward —- as we mentioned — the potential for gold to peak this week and begin a sideways to lower trend into mid month is a consideration when we look at short term cycles. However the seasonals do favor higher overall into the month of May so an April pullback — should still garner higher prices into month end and early May should we get a pullback. The trend is still up.

by Bill Downey

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Utah just one of Thirteen States that want Gold Currency

Saturday, April 2nd, 2011

Here at we have previously discussed the moves in Utah to introduce its own gold currency, Gold currency is making a comeback! In Utah, they could soon be buying a hamburger with gold! and noted that progress was made by the passing of a bill in Utah Gold Currency a step closer.
However, Utah is not alone.

There are no fewer than 12 other States which are pushing for a return to gold currency by introducing bills before the Legislature in the form of the ”Constitutional Tender Act”.
The 12 States are:
New Hampshire
North Carolina
South Carolina

The “Constitutional Tender Act”

The United States Constitution declares, in Article I, Section 10,
“No State shall… make any thing but gold and silver coin a Tender in Payment of Debts”. This means that no State can make something a “tender in payment” (which means they cannot “make something an offer as payment”) for any debts, which would include debts owed by and to the State.
However, EVERY State in the United States of America HAS made some other “Thing” an offer as payment – they have by law declared that they will accept, and pay out, Federal Reserve Notes for any debts owed by or to them.
Therefore, every State is in violation of Article I, Section 10 of the U.S. Constitution.
Thus the need for the “Constitutional Tender Act” — a bill template that can be introduced in every State legislature in the nation, returning each of them to adherence to the United States Constitution’s actual legal tender provisions.

Most importantly the bills are aimed at protecting the people from the continued devaluation of the dollar and almost certain hyperinflation which is due in the future.
It is also seen as a way for States to insulate themselves from the policies and practices of the Federal Reserve which seems to be pursuing the inflationary practice of monetizing the national debt to address the consequences of runaway federal spending.

The Privately Owned Central Bank

Did you know that the Federal Reserve is a private institution with link shareholders? Most folk believe it is a federal agency.

Fed shareholders earn 6% interest “by law” and as for reserves, well they have none. The only thing the Fed does is create paper and charge the government interest for doing so. It also has licence to print “paper money” that is not backed by assets. The more it produces the more the value of the dollar is diluted. The $800 Billion it has printed for QE2 are merely bits of paper with ink on them that eventually some average Joe will be charged interest for using or borrowing. In reality the money doesn’t exist just the debt it creates.

Individual states have not issued legal tender for over a hundred years so why now?

Because the weakening of the dollar by the Fed to essentially reduce the size of the national debt has also eroded the savings of citizens, the price of their houses, the worth of their pay cheques and eroded their purchasing power at a time when inflation is rising but wages are stagnant. Enough is enough.
History is on the side of the people here. In the original drafting of the Constitution the Founders disliked “paper” money so much they provided specific wording against it.
The transcript of the debates in the original Constitutional Convention shows the attitude of the Founders toward paper money was one of disgust. In debate one delegate, Roger Sherman, called for the insertion of an absolute prohibition against states issuing their own paper money.

Mr. Wilson and Mr. Sherman moved to insert after the words ‘coin money’ the words ‘nor emit bills of credit, nor make any thing but gold and silver coin a tender in payment of debts’ making these prohibitions absolute…

Mr. Sherman thought this a “favourable” crisis for crushing paper money.

The Founders voted to adopt Sherman’s “crushing” of state-based paper money.

As for the federal government, the original draft of the Constitution included language permitting the federal government to issue unbacked paper money. The Founders objected strongly to this power. The objections were summed up by delegate Oliver Ellsworth:

Mr. Elsesworth thought this a favourable moment to shut and bar the door against paper money. The mischiefs of the various experiments which had been made, were now fresh in the public mind and had excited the disgust of all the respectable part of America. By witholding the power from the new Governt. more friends of influence would be gained to it than by almost any thing else. Paper money can in no case be necessary. Give the Government credit, and other resources will offer. The power may do harm, never good.

Those who wrote the Constitution decisively stripped the federal government of the power to issue inconvertible paper money. And stripped it stayed… until, temporarily, during the Civil War. Saving the Union was of transcendent importance.
For most of American history dollars were convertible into gold or sometimes silver.
It is a 20th century innovation to have unconvertible money

On April 19 1933 Franklin D Roosevelt took the US off the Gold Standard and Americans had to exchange their gold for paper dollars at $20.67 an ounce (so a dollar was approximately equal to 1/20th of an ounce of gold). This was the start of the Great Confiscation which lasted until 1975.
In 1945 The Bretton Woods Agreement created a “Gold exchange standard” whereby the US promised to fix the price of gold to $35 an ounce (the dollar therefore was worth 1/35th of an ounce). The dollar therefore became the world’s reserve currency and was used for international trading and commerce, notably for the quotations of oil. Therefore all other currencies were effectively pegged to the dollar and therefore gold. At this point “paper” money had a reference value and theoretically could be exchanged as originally intended for a specific weight in gold.

However, in 1971 Richard Nixon suspended the convertibility of the dollar into gold because of the huge US debts following the Vietnam War. This was another nail in the dollars coffin. The gold price was approximately $41 an ounce ( so a dollar was worth 1/41th of an ounce). This also effectively unhinged all the other currencies from a gold standard as they had all been pegged to the dollar. The Demonetization of gold was completed by the Jamaica Agreement. This meant currencies could freely float in value up and down which they did. It marked the first time in history that only Fiat currencies existed (i.e. unbacked currency).
President Nixon announced this as a temporary suspension.

Nixon Lies again and again

President Nixon made certain promises to America when he suspended convertibility of the dollar. August 15, 1971:

“I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold ….

Now, what is this action–which is very technical–what does it mean for you?

Let me lay to rest the bugaboo of what is called devaluation.

If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today.”
The dollar has actually lost 3848% of its value when measured against Gold since Nixon declared this.
An ounce of gold is today quoted at $1420 (rounded up) which means that a dollar is technically only worth 1/1420th of an ounce compared to 1/41th of an ounce when Nixon made his declaration.
This steady erosion of the worth of a Dollar is exactly why there are calls for a return to gold currency or gold-backed currency in 13 States with others already contemplating the same.
One can understand the concerns and the choice between paper dollars or a piece of gold to preserve your wealth seems self-evident.
Just in case let’s check the value of the Dollar expressed in Gold.

Value of US Dollar expressed in Gold (ounces)













From Confiscation until Bretton Woods 12 years later the Dollar lost 175% of its value against gold (an average of 14.58% per annum).
From Bretton Woods created the standard until Nixon removed it 26 years later the Dollar lost 117% of its value against gold (an average of 4.5% per annum).
In the last 40 years since Nixon unhinged the Gold Standard, the US Dollar has lost 3484% of its value against gold (an average of 87.1% per annum).
In a total of 78 years since confiscation in 1933 the US Dollar has lost over 7142% of its value against Gold (an average of 91.56% per annum).

So the period of greatest stability for the Dollar was with a Gold Standard and Confiscation still in place.
The most unstable period for the Dollar was when neither of these was in place as is the case today.

If the Dollar continues to falls by at least the average for the last forty years, bearing in mind that current world events could add to its woes, then it would be worth 0.00009 ounces of gold or 1/11111th of an ounce within a year – that gives a gold price of $11,111 an ounce.

It is especially pertinent when one considers the strength of an investment over time – Gold is anti-inflation and anti-crisis. It will always maintain real value, worth and purchasing power which can be traded and wilfully accepted in exchange for the necessities of life. This cannot be said for paper money which as history has proved time and again eventually becomes a worthless piece of paper whose only real value is its calorific heat value for burning!
This illustrates exactly why the peoples of Thirteen States are leading the charge to convert to a gold currency that maintains real value rather than be chained to the US Dollar which will only be of value for fire-lighting very soon.
It is inevitable that currency must be established against a fixed reference for it to have any real value and this road will always lead back to Gold as history has proved.
If you’ve never bought Gold before then maybe now is a good time before your savings literally go up in flames.

Might the price of gold reach $US 5.000?

Friday, April 1st, 2011

No-one has a crystal ball to look into the future. However, this did not stop Rob McEwen, Chairman and Executive Director of Minera Andes and US Gold Corporation, from voicing any doubt in his belief that if the current trend continues the price of gold might reach $5,000 an ounce over the next three to four years.

McEwen based his predictions on the constant demand for gold from sovereign states, central banks and investment funds which are quoted on the stock market. Moreover, he justified this time frame and the forecast of $5,000 based on the historical price of metal and the ratio for the Dow Jones share gold index since 1970.

“Gold is used as an insurance by poor governments”, stated the executive during a mining conference being held in Hong Kong. What is certain is that no-one is in a position to say that McEwen does not put his money where his mouth is: this businessman has ensured that some 90% of his own personal assets are deposited in physical gold and he added that he owns a 31% shareholding in Minera Andes and 20% in US Gold Corp, both based in Toronto.

Currently the price of gold is over $1400 an ounce owing to the fear of investors about the situation in Libya and Japan. Since last year, the doubts caused by a global economy not managing to recover from the international financial crisis which broke out in 2008, has made gold into the asset preferred by investors who are looking to get out of “paper money”.

In these times, the economic uncertainty has become more accentuated owing to the risk of default by Portugal which is in the middle of a political and economic crisis which has led to the fall of the Prime Minister José Sócrates. According to some European sources, the financial rescue of Portugal will cost in the region of $100 Billion.

Gold Trends Intra Day Gold Update – April 1st

Friday, April 1st, 2011

Last nights website update listed resistance at 1437-1446 and the high so far is 1436.50 — support was listed at 1419-1425 and the low so far is 1413.

The big factor supporting gold recently has been inflationary expectations, which were given a boost yesterday by strong rallies in grains and livestock as well as ongoing strength in crude oil. Comments yesterday from the Wal-mart CEO that consumers face “serious inflation” seemed to be laying the groundwork for higher retail prices ahead.

With a new month — and a new Quarter — the Media is really spinning the data of a US economic recovery as the new hires came in at a plus 212K this morning. The spin of course is that the feds are going to be able to stop printing and supporting the economy……….and to carry it further, they will also begin to talk tough on how they are going to curb inflation — when in fact they are the reason for inflation. Media is spinning that the stock market had its best quarterly gain in 13 years, and manufacturing is having a great year and the unemployment rate is going down. This spin of course is to lead the market to one conclusion — that the feds could increase interest rates…………….to which we say………….. not at the moment.

Underneath it all —- the US Dollar — has rallied very strong against the yen again this week in what must be considered intervention. But it has been enough to rescue the dollar from its precarious position on the charts.

The news has produced a hard sell off in the metals so far this morning. One item we discussed last night was that the short term stronger cycles were due to peak between today and this coming Wednesday. But since the Metals usually exhibit strength at the beginning of a new month — the key now will be to see if Gold can stabilze here and regain it’s composure going into today’s close. This has also often occured on these report days for the metals so it is not out of the question for gold to bounce back as the day wears on — and is another factor we discussed in last night’s update.

Going to the chart — we can see that today’s sell off was once again a 4th TEST of the 1410-1412 area and another hit on the lower purple channel line.

Perhaps more important is the failure for gold to have closed above the 1436 area we’ve been watching for. This remains an important price point. Support is the 1410-1415 area for the remainder of the day —-and resistance is the 1423-1429 area and then 1436.

In summary — a bounce back from the lows is underway — and if gold can remain firm and push up into the close it will keep the trend up. Any close below the lower purple line will put the upside in question.

From a historical standpoint — short term trends are due to peak in the first week of April — and last into mid month. Closes below the lower purple channel line will add to that potential. We’ll pick it back up next week. Lets see if gold can push back up as we move into the close. As long as we remain above the purple channel line — the trend is still up.
What we want to see now — is a strong finish for the metals.

by Bill Downey

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"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."